Bitcoin Lags Behind Global Liquidity Growth as Russell 2000 Breakout Sparks Bull Run Hopes

Liquidity is rising — but Bitcoin hasn’t caught up yet.
According to Coinpaper, Bitcoin’s price action continues to trail behind the growth of the global money supply, even as traditional markets flash early signs of a risk-on breakout led by the Russell 2000 index.

The move has reignited bullish chatter across crypto circles, with many analysts suggesting that Bitcoin may be next to respond to expanding liquidity and improving investor sentiment.

Global Liquidity Expands, But BTC Pauses

Recent macro data shows that central bank liquidity — particularly in the U.S. and Asia — is on the rise again.
Historically, Bitcoin has tracked liquidity expansion closely, acting as a hedge against currency debasement and fiat inflation.

However, since Q4 2025, BTC has underperformed relative to the pace of money supply growth.
Analysts attribute this to short-term profit-taking, ETF rotation, and regulatory caution — not a breakdown in fundamentals.

“Bitcoin’s lag is unusual but not worrying. Liquidity always finds its way into crypto — it just takes time,” one strategist told Coinpaper.

Russell 2000’s Breakout Ignites Risk Appetite

The Russell 2000, often seen as a barometer for small-cap and high-risk assets, recently broke out of a long consolidation range — signaling renewed investor appetite for growth and speculative markets.

That move has historically aligned with crypto bull cycle beginnings, as capital shifts from defensive assets into higher-risk opportunities like Bitcoin and Ethereum.

“When the Russell starts running, Bitcoin usually follows — it’s a liquidity rotation story,” analysts explained.

Macro Meets Crypto

The broader narrative is clear:
Liquidity is expanding.
Investors are rotating into risk assets.
Bitcoin is sitting quietly — for now.

Many traders view the current divergence as a setup, not a setback, predicting that BTC could outperform in Q1 2026 as capital flows into digital assets catch up with broader financial markets.

Outlook: Patience Before the Next Push

Bitcoin’s underperformance relative to the global money supply isn’t a bearish signal — it’s a lagging reaction within the liquidity cycle.
Once global risk appetite spreads from equities to digital assets, analysts expect a sharp recovery led by Bitcoin, followed by Ethereum and Solana.

In short:
The money is already flowing — it just hasn’t reached crypto’s doorstep yet.